UAH 5 bln More to Be Paid for Additional Construction Works on 3 Water Pipelines

From April 23 to May 10, the Service for Restoration and Development of Infrastructure in Dnipropetrovsk Oblast reported on three contracts for additional construction works on main water pipelines to eliminate the consequences of the Kakhovka HPP destruction by the Russians. The cost of the transactions amounted to UAH 5 bln. 

By the end of 2025, Autostrada Group of Companies LLC shall complete additional construction works on the Khortytsia (DVS2)—Tomakivka—Marhanets main water pipeline for UAH 2.1 billion. Avtomagistral-Pivden LLC will perform construction works on the Inhulets—Southern Reservoir main water pipeline for UAH 2.4 billion. Rostdorstroy LLC shall perform construction works on the Marhanets—Nikopol—Pokrov main water pipeline for UAH 0.6 billion.

The Nashi Groshi program has analyzed the estimates for the construction of the Inhulets—Southern Reservoir and the Khortytsia (DVS2)—Tomakivka—Marhanets water pipelines and believes that the prices for materials are market-based.

Currently, the total cost of construction of the three main water pipelines amounts to more than UAH 17 billion. 

After the occupiers blew up the Kakhovka HPP in June 2023, the government decided to build three main water pipelines without tenders. The Service for Restoration and Development of Infrastructure in Dnipropetrovsk Oblast published the contracts concluded directly on July 19 for the construction of the main water pipelines for UAH 12.6 billion. 

By the end of 2024, the three water pipelines shall be built in Zaporizhzhia and Dnipropetrovsk oblasts for cities that have been left without water from the Kakhovka Reservoir.

■     Rostdorstroy LLC is to build the Marhanets—Nikopol—Pokrov water pipeline for UAH 2 bln. The length of the water pipeline is 40.9 km, the declared capacity of the facility is 102,000 cubic meters per day.

■     Avtomagistral-Pivden LLC is building a part of the pipeline from the Inhulets River to the Southern Reservoir for UAH 5.32 billion. The length of the water pipeline is 26.9 km, the declared capacity of the facility is 400,000 cubic meters per day.

■     The Khortytsia (DVS2)—Tomakivka—Marhanets pipeline is being built by the Autostrada Group of Companies for UAH 5.3 billion. The length of the water pipeline is 76.7 km, and the declared capacity of the facility is 150,000 cubic meters per day.

The contracts provide for not only construction works, but also design.

In late 2023, the procuring entity published an additional agreement, according to which the cost of constructing the Marhanets—Nikopol—Pokrov water pipeline decreased to UAH 1.9 billion. In April, after the conclusion of additional agreements, the cost of building the water pipeline from the Inhulets River to the Southern Reservoir was reduced to UAH 5.3 billion, and the cost of the Khortytsia (DVS2)—Tomakivka —Marhanets water pipeline fell to UAH 5 billion.

As reported by the Slidstvo Info program, in early April 2024, the Service for Restoration and Development of Infrastructure in the Dnipropetrovsk Oblast sued Avtomagistral-Pivden LLC and asked to recover UAH 9.1 million. The procuring entity believes that the contractor does not fulfill the terms of the contract properly. 

Avtomagistral-Pivden LLC was founded in 2006 in Odesa. The company was founded by Oleh Nalyvannyi and Valerii Korotkov. Currently, the owner of the company is Oleksandr Boiko, who is associated with the entourage of the Odesa mayor Hennadii Trukhanov. Since 2016, the company has received contracts for more than UAH 175 billion. 

Rostdorstroy LLC was founded in 2005 in Odesa. The beneficiaries of the company are Yevhen Konovalov and Yurii Shumakher, member of the Odesa City Council from the party of mayor Hennadii Trukhanov. Since 2016, the company has received contracts for more than UAH 92 billion.

Autostrada Group of Companies LLC was founded in 2015 and registered in Vinnytsia. The company is part of the construction holding MS Capital. It is owned by businessman Maksym Shkil. Since 2017, the company has received contracts for more than UAH 120 billion.

This publication was prepared with the financial support of the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.